Mar 22, 2024 - Business

Trump's social media company finally gets its chance to go public

Illustration of a hand placing the Truth social app icon in a ballot box.

Illustration: Annelise Capossela/Axios

Digital World Acquisition Corp. shareholders on Friday will vote on its proposed merger with Trump Media & Technology Group, the parent company of Truth Social. If successful, TMTG could become a publicly listed company by as early as next week.

Why it matters: This is the potential end to a multiyear saga that's included civil lawsuits, criminal lawsuits, closing extensions, and vote postponements.

  • For timing context, when DWAC first agreed to buy TMTG, Twitter was still a public company that viewed Elon Musk as little more than a power user.

The intrigue: DWAC this week sued former CEO Patrick Orlando, in an effort to force him to vote his 14.77% stake in favor of the merger.

  • Orlando hasn't yet shown his cards, except to say he'll be at the shareholder meeting when it begins at 10am ET on Friday.

The bottom line: TMTG could become the meme-iest of all meme stocks, an unprofitable social media company with billions in value on just single-digit millions in revenue.

  • It also could become a financial lifeline for Donald Trump, although he'd still be subject to lockup restrictions and questions about the depth of market liquidity.

Go deeper: Reddit vs. Truth Social, a tale of two listings

Go deeper